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profile Brown at a training session in a community hall in Kisoro, southwestern Uganda. Water man Up to four billion people routinely drink contaminated water, a number sure to shrink with Edmonton broker Jeff Brown visiting underdeveloped countries to promote the safe and inexpensive solar water disinfection system. “If people can solve this problem,” Brown says, “they can work their way out of poverty.” J eff Brown is truly a man on a mission. The Edmonton businessman shows the inhabitants of underdeveloped countries how to create a safe and inexpensive supply of potable water. And he’s doing so on his own dime. A management accountant with an FCIP designation, Brown is also the sole owner of Pratt Lambert & Brown Insurance, an independent home and auto brokerage specializing in professional and general liability insurance for selected markets. Brown bought the business in 1994 from the estate of his late father Ken, a longtime manager with Wawanesa Mutual who, in 1949, decided to strike out on his own. Jeff, 50, was born and raised in the Alberta capital. Wawanesa transferred his father to New Brunswick to manage the mutual’s branch office there, so Brown attended university in the province, graduating with an undergraduate degree in business administration. Before joining www.insurancewest.ca the family operation in 1990, Brown worked with Reed Stenhouse in Edmonton and for Vancouver’s Jardine Rolfe. Pratt Lambert & Brown has a staff of 14 and an annual premium volume of about $11 million. In addition to Alberta, the brokerage operates in B.C., Saskatchewan, Manitoba, Ontario and Quebec. The idea of helping people around the By Ron Shorvoyce world obtain potable water goes back a few years, to a business plan Brown developed for a water-bottling facility in Nigeria. The project ran into all kinds of obstacles – from corruption to high capital costs, from war to theft. “The experience made me search for a solution that was practical but would still appeal to my business sense,” Brown said. “That’s when I learned of the solar water disinfection system. It’s a very simple way of purifying water, using nothing but the sun’s energy.” Brown says the system does not involve large capital costs. About all that’s required, he says, is getting the knowledge out to people so they’re able to treat their own water. It’s remarkably simple: clear plastic bottles – the type used by the soft drink industry – are used to store the water, and are then exposed to the rays of the sun. “All you need is a one-litre pop bottle that is transparent to ultraviolet radiation,” he explains. “If the bottle is clear, it can simply be put on a rooftop that has Insurancewest March 2009 11 a reflective coating. The water (clear, not muddy) is left for one day – two if the sky is overcast – which is enough to purify the water. It’s so simple, but people don’t know about it.” The science of the system goes something like this: the ultraviolet radiation disrupts the genetic processes of bacterial reproduction, destroying the cell walls of micro-organisms. One-litre Diana Brown bottles work the best; oneand-a-half-litre bottles are the maximum size that can be used. The process, which has been approved by the World Health Organization, dates back to the ancient Romans. “The Romans used to purify water by leaving pans of water out in the sun,” Brown says. “Archaeologists wondered about this. About 30 years ago a professor at the University of Beirut demonstrated that it was possible to purify water this way.” Worldwide, he says, water is the biggest single challenge to quality and safety of life. Up to four billion McPherson people routinely drink contaminated water. “If people can solve this problem, they can work their way out of poverty. Mothers can go to work in the fields instead of looking after sick children. Children can stay in school and parents can spend money on small businesses as opposed to medicine.” To promote the concept, Brown and a group of like-minded individuals formed the Kenmar Foundation, which has applied to be recognized as a charitable trust by the Canada Revenue Agency. Brown’s travels typically take him to the most impoverished parts of the world. He’s been to Africa twice to promote and demonstrate the process and recently visited Brazil. In June he’s going to the central African country of Cameroon. He pays all his own travel expenses. “There really isn’t any big organization behind me,” Brown says. “But I link up with other organizaPowell tions that are sympathetic to the cause. In the field I’m careful to align myself with schools, churches or other institutions that have a credible presence in the area.” Vital Stats • Brown’s wife Diana is also an accountant. She runs the brokerage in his absence. The couple has two children; both live at home. Ryan is 14. Meagan is 17. • He used to play guitar a lot when he was younger and has recently rekindled an interest in the instrument. “My son is playing bass guitar now and I jam with him a bit.” • Brown and his family often visit Vancouver. “My wife’s family is out there.” • The Browns live in Edmonton’s Terwillegar Gardens area, about 20 minutes from the office. • Brown golfs, but poorly. “I’d rather just sit in the cart and open the beer for people.” • He enjoys cycling. If he has the day off, he’ll ride for four or five hours. Gary McPherson, executive director of the Canadian Centre for Social Entrepreneurship at the University of Alberta’s School of Business, is an old friend. He and Brown socialize regularly. “We live in close proximity to each other,” said McPherson, an author and quadriplegic who in 2006 ran for the leadership of Alberta’s Progressive Conservative Party. “There’s a group of us guys who get together once a month for what we call choir practice – at least that’s what our wives think it is. We pour a little alcohol. Jeff is a quiet, low-key kind of guy. He’s sure not the loudest guy at a football game.” Robert Powell, who owns an Edmonton firm producing educational and training programs, has known Brown for about four years. He describes the brokerage owner as a devoted, unassuming family man and an accomplished guitar player who appreciates scotch. About his friend’s mission, Powell says, “It’s all volunteer work. What can you say about a guy like Strean that?” Billy Strean, who teaches physical education at the University of Alberta, has known Brown for 15 years. They used to be neighbours. “He has a phenomenal sense of humour,” Strean says. “He’s not exactly the life of the party, but he’s quite clever. He’s like the book you can’t judge by the cover.” More information about the potable water problem and solution is available at www.solarwaterdisinfection.ca. IW Facilitating solutions for the insurance industry Partnership Powered by Compu-Quote www.compu-quote.com 12 March 2009 Insurancewest www.insurancewest.ca streetTalk Continued from page 9 the Yukon, a town of about one thousand residents. The seven-member Yukon branch of Axis, which recently celebrated its first anniversary, is owned by Jeff Peters, a former account manager and broker with Aon in Whitehorse. Axis Insurance ManagPeters ers, an all-purpose operation, has five B.C. locations in addition to its Whitehorse branch – three in Metro Vancouver and one each in Kelowna and Williams Lake. Its president is Tony Davis. HATTON ON THE MEND Duncan, B.C., broker Don Hatton, 50, is nursing three fractured ribs, bruised kidneys, battered lungs, internal bleeding and a lacerated shoulder after taking a race-ending spill on the fourth day of the two-week Hatton long Dakar Rally South America, the most punishing motorsport contest on the planet. “I hit an inaccurately marked jump at 130 kms an hour,” Hatton told Insurancewest in a long-distance telephone interview from Argentina shortly after leaving hospital. “I actually thought I was going to die. At first the doctors figured I’d broken my back.” The 9,500-km race route, which begins and ends in Buenos Aires, winds along the potholed, dust-choked mountain and desert arteries connecting Argentina with Chile. Only 113 of the 235 motorcyclists who began the ordeal were able to finish. McFarlan Rowlands Insurance Brokers of London, Ont., and the former president of the Insurance Brokers Association of Ontario, will represent the province as a member of the Insurance Brokers Association of Canada’s national board of directors. In other IBAC news, outgoing president Hancock Danny Craig, president of Ontario’s Craig, McDonald, Reddon Insurance Brokers, has been elected the organization’s chairman of the board. Former IBAC VP Justin MacGregor, HANCOCK JOINS IBAC EXECUTIVE Rod Hancock, president and CEO of Continued on page 20 Let’s Get Personal David Lyons has joined Western Canada’s Chutter Underwriting Services to add Personal Lines coverages to its menu of products and services for brokers. Aurora Underwriting Services Inc. 570, 10310 Jasper Avenue Edmonton AB T5J 2W4 Tel: (780) 442-2240 Toll-free tel: (866) 328-1314 Fax: (780) 428-8143 Toll-free fax: (866) 428-8143 Recreational Vehicles • Motorcycles • Manufactured Homes • Commercial Wholesale BROKER FOR BROKERS Property • CGL (incl. Truckers) Cargo • COC • Umbrella/Excess Auto Physical Damage (incl. Logging) Special Events • CEF • Aviation High Value Homes • Fine Arts Cross Border • Product Recall Stand Alone Crime Please visit our website at auroraunderwriting.com www.insurancewest.ca Personal lines: 604-522-8870 Toll-free: 1-866-683-8870 Fax: 604-522-8891 www.chutterplus.com Issue a policy at Insurancewest March 2009 13 14 March 2009 Insurancewest www.insurancewest.ca profile Where the boys are Victoria, B.C.’s Megson FitzPatrick grew out of a small family operation launched in 1968 by Alan and Evelyn Megson. Over the past 30 years the couple’s son Michael (left) and his university roommate Dave FitzPatrick – “the boys,” as they are sometimes referred to – have expanded the business to include eight partners, four locations and 80 employees. By Stan Sauerwein B ack in 1977, when he began working at his father Alan’s Victoria, B.C., brokerage, Michael Megson entertained doubts about a career in insurance. The industry did present the challenges he was looking for, however, and he had been invited to buy in as an owner – an invitation, as the saying goes, that was hard to refuse. Alan Megson had started the brokerage in 1968. While the business did well in its first decade, it Ireland remained a small family enterprise. Prior to his son’s arrival, staff consisted of Alan’s wife Evelyn and Jane, his sister. Michael Megson had worked part time at the agency while studying economics at the University of Victoria, so he was familiar with its customers and carriers. The move from the classroom to a desk at the family operation was a comfortable one. “I thought I’d give insurance a try, but the brokerage was pretty limited in scope.” He had ideas about how to grow the business, but he would need help. David FitzPatrick had been Michael Megson’s roommate at university. He was, says Megson, a “fun guy, always telling jokes, www.insurancewest.ca always happy. Dave kept me up laughing and partying more than a couple of nights.” FitzPatrick had started his own insurance career as a management trainee at the Victoria office of Guardian Insurance in May 1978. While working on his AIIC designation – Associate of the Insurance Institute of Canada, precursor to the CIP – he won the Marsh & McLennan award for the top student in B.C. “Politics,” his major in university, says FitzPatrick, “was a fallback position.” As the pair was finding a footing in the industry – FitzPatrick on the company side, Megson at the family brokerage – they maintained the friendship, often meeting to talk shop. In September 1979, one year after Alan Megson had retired, they joined forces, renaming the Megson family operation Megson FitzPatrick. “Dave joined me on the condition that I sell half the shares to him right away,” Megson said. “I had to agree because I think the shares were still just $10 and that was about all he could have afforded anyway.” Like his partner, FitzPatrick also enjoyed “the people side of things that Mattear went with being a broker.” Megson, 54, spent a couple of years in the early 1980s on the executive of the Insurance Brokers Association of B.C. He also served as president of the Victoria Insurance Brokers Association (VIBA). He and wife Shawn raised their two daughters in Cordova Bay, a short drive from the provincial capital. Megson took on the VIBA presidency again in 1995 and was president of IBABC in 1998. Away from the office, he’s a serious motorsport enthusiast, the owner of four motorcycles. FitzPatrick, 56, also served the industry. He has been president of the Victoria chapter of the Insurance Institute of B.C. Bolster and president of VIBA. He was president of IBABC in 1990. The 14-handicap golfer (who this year bagged his first hole-in-one) also enjoys walking, swimming and all manner of sports. In the past 20-plus years he’s attended every Grey Cup game but one. “My wife Wendy and I also love to travel,” said FitzPatrick. “I wouldn’t be reticent about going anywhere in the world.” The brokerage, which recently celebrated its 40th anniversary, has come a long way since its modest beginnings as a small family-run enterprise. There are presently eight partners. Besides the operation’s eponymous founders, they include Brenda Ireland, Craig Mattear, Laura Bolster, Jay Tuson, Ralph Libby and Luke Mills. Employees staffing the four Greater Victoria locations number 80. Excluding Insurance Corporation of B.C. revenue, premium volume is about $30 million per year. “We like being independent,” says Insurancewest March 2009 15 FitzPatrick, “and we’ll never be owned by an insurance company. We restructured ourselves recently because of our size and have become much more focused and systematic. “Up until three years ago, Mike and I basically managed everything, and we were the main producers as well. We ran really Tuson hard, but it got to the point we were just managing – reacting to what was coming at us instead of being proactive.” Both Megson and FitzPatrick belong to Sitkins International – formerly the Vertical Growth Network – the exclusive, invitation-only assemblage of non-competing, high-performance brokers who represent the majority of top p&c insurers in the Canadian marketplace. “It helped us to restructure the company and delineate duties so that we’re not going in 10 different directions all the time,” FitzPatrick said. The two senior partners are enthusiastic about what the restructuring has meant to the business. “For the next three years we’re trying to concentrate on becoming more domiLibby Serving Alberta, British Columbia, Manitoba & Saskatchewan PROFESSIONAL LIABILITY INSURANCE Insurance Brokers Errors & Omissions the product speaks for itself! 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If they have the right stuff, they make partner.” “We’re much better now at communicating our values and asking employees and partners to live those values too,” said Megson. Megson and FitzPatrick were able to savour the fruits of their labours at the anniversary shindig. Two hundred industry friends turned up. “It was very moving,” said Megson. “When I started here Wynne there were only four of us on staff, and David and Michael were already thinking long-term then,” said partner Brenda Ireland. “They weren’t thinking about today or next month. Their focus was on building a great reputation and relationships. They always took the high road, and that’s why I’m still here.” Phil Wynne, regional VP with ING (now Intact) Insurance, has known Megson and FitzPatrick for 25 years. “Michael and David have always been the consumStickle mate professionals,” Wynne said. “They are to be commended for building the largest independently owned insurance brokerage in Victoria.” Darwyn Stickle, senior partner with Vancouver Island’s Coast Claims, has also known “the boys,” as he calls them, for more than 20 years. “I’ve seen just how hard they’ve worked to build their business,” Stickle said. “When people work that hard, you like to see them succeed.” IW www.insurancewest.ca Some things are the same wherever you go like a great travel insurance provider. profile The start of something big When Dan and Catherine Mengel bought a brokerage in Imperial, Sask., in 1996, the business had premium volume of $400,000. These days the couple has six offices, a dozen employees and premium volume of $5 million, making it one of the largest rural brokerages in the province. T By Ron Shorvoyce welve years ago Dan Mengel’s mother-inlaw, Gayle Brooker, suggested he consider buying Lewis Agencies, where she was employed, in Imperial, Sask., a village of about 350 people halfway between Regina and Saskatoon. It was an interesting proposition. Mengel grew up on a farm in the Holdfast area, not far from Imperial, where his wife Catherine was from. Within a month the couple returned from Edmonton, where they had been living, and bought the business. The brokerage had an annual premium volume of about $400,000 – small by any standards. But it was the start of something big, because the couple now owns a string of five insurance offices through their firm, Long Lake Insurance. They also own another agency, Watrous Insurance Brokers, which they bought in 2007. In all, including Watrous, they have a dozen employees. Annual premium volume is about $5 million, which makes it one of the largest rural brokerages in Saskatchewan. Mengel had no idea the business would do so well. “The people we have allowed us to succeed,” he says. “Without our staff, it wouldn’t have been possible.” This past November, to show their appreciation, the Mengels treated everyone The Watrous office working for Long Lake to an all-expenses-paid trip to Las Vegas. Next year, Dan says, they’ll do something nice for their Watrous employees. Joanne Measner is the longest-serving staffer 18 March 2009 Insurancewest at Long Lake. She started with Metz Agencies in Holdfast 18 years ago and was pleased to stay on when the Mengels bought the brokerage. Measner runs the Holdfast office. “I really enjoy working for the Mengels,” she says. “They’re good people, very easygoing. I feel like a co-worker.” Measner says she appreciates her independence on the job. “I feel comfortable when Dan is here. And when he’s not, I don’t have to phone to find out if I can do something.” One of the newer employees is Donna Kirk, who works for Watrous Insurance. She popped into the office one day and one of the girls asked if she wanted a job. “I now oversee the front office and handle the licence-issuing. I like the work; it’s challenging. And the Mengels are fair. They’re always ready to listen.” Kirk wasn’t certain the insurance business was going to be a good fit for her when she started. But now, she says, there’s nowhere else she’d like to be. “You don’t get bored, that’s for sure.” When Dan Mengel graduated high school in Holdfast, insurance wasn’t even on the radar. He took electronics training at a technical institute in Moose Jaw and then went to work in the early 1980s as a technician at CKCK Television in Regina. He was only there a couple of years before he began thinking about the insurance business. So he took a job with Saskatchewan Crop Insurance, a provincial Crown corporation, at its head office in Regina. Soon he relocated to Melville. Then Mengel became manager of administration. But the provincial government changed in 1991 www.insurancewest.ca Mountain Lake, which everybody in the and the following year the New Demoarea refers to as Long Lake because of its cratic minions decided that Mengel, who length. In 2004 they acquired a brokerage had been hired under a Conservative called Metz Agencies in Holdfast; it had administration, had to go. satellite offices in Bethune and ChamberMengel had always been an excellent lain. They purchased Carlson Agencies golfer, so he took a golf management in Craik in 2006 and Watrous Insurance course at Grant MacEwan College in Edin 2007. monton. It was while he was working at “Watrous was a bit of an unfortunate golf courses in the Alberta situation,” Dan Mengel says. “The previcapital that his motherous owners, Jim Crawford and his partin-law called about Lewis ner Gary Manson, decided to sell because Agencies being for sale. of Gary’s illness. Gary was diagnosed “It was an opportunity with terminal cancer and passed away to have our own business,” very quickly. So Jim offered the agency Mengel says. “I got my Measner to us.” licence at a time when The Mengels currently live in Saskalicences were being grandfathered.” toon to accommodate their For Catherine, it was a nice transition. son Dallas, 16, a promising “My mom worked for the brokerage golfer. The courses in rural and Imperial was my hometown,” she Saskatchewan are not quite said. “It was a good opportunity.” what they are in the city. Gayle Brooker retired about a year ago. “He’s ranked among the Owning and running a brokerage, Dan top 10 or 15 amateur golfMengel learned, is not the same as workKirk ers in Canada and he likes ing for a Crown corporation. There was to compete,” Catherine says. “He’s been a steep learning curve. But the Mengels all across Canada and has competed in picked up things quickly and it helped San Diego.” that Catherine was a CGA and could The Mengels plan to remain in Saslook after the books. She’s also a broker. katoon until Dallas finishes high school The couple named their brokerage and enters12/12/2008 university. Then, says AM Dan,Page 43, 1 Long Lake Insurance after nearby Last GMS_InsuranceWest_2009:InsuranceWest_2009 11:38 they may settle in Watrous, since it’s the busiest of all the offices. The Mengels commute each day from Saskatoon, sometimes travelling together and sometimes separately, depending on the agenda. Dan Mengel is on the road a lot, regularly visiting the offices of his Long Lake empire. Catherine works out of the Watrous office, which also has a real estate arm. “Besides the accounting, I’m starting to get involved in the insurance side as well,” Catherine says. “I do some farm accounts and deal with customers.” High school sweethearts, the Mengels got married in 1985. “When we started dating,” she says, “Dan was in Grade 12 and I was in Grade 10.” Their insurance business has spawned another business. The Mengels have set up Long Lake Promotional Products, which operates out of the Chamberlain office. It supplies items such as hats, shirts and key chains to anyone interested in purchasing the products for their own promotional purposes. “I give away a lot of stuff to customers and I thought I might supply it myself,” Dan says. “It’s turned into a good little business.” IW Any Clients Headed South? 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We offer a complete range of Individual Health, Travel and Group Benefit products. TravelStar® Insurance underwritten by Group Medical Services. Group Medical Services is the operating name for GMS Insurance Inc. Products not available for sale in Quebec or New Brunswick. www.insurancewest.ca Insurancewest March 2009 19 streetTalk meanwhile, is the new president-elect. “There’s been a noticeable drop in new business. It makes us a little nervous that people might start to reduce the level of insurance they normally buy.” SLOWDOWN IN ALBERTA Hard economic times are apparently having an impact on the insurance business in Alberta, according to broker Dean Bailey at Banff ’s Rocky Mountain Agencies. Bailey, a director-at-large with the provincial brokers association, says fewer cars are being bought and fewer houses sold. Bailey ONTARIO MERGER One of Canada’s largest brokerages was begat recently with the merger of KRG Insurance Brokers, which is not related to B.C.’s KRG Insurance Brokers (Western), and Roger R. James Insurance Brokers (RRJ), both Ontario-based firms. KRG continues to operate under its present name. Founded in 1976, RRJ also acquired Whetter Oaklin Insurance Brokers and Continued from page 13 Frost Insurance Brokers of Lindsay, Ont. “We’re very excited about the merger,”said KRG’s CEO and president Paul Martin. “It will bring a lot of synergies together. And while we’re both Ontario-based, we’re not ruling anything out.” In a press release, RRJ’s co-CEOs Abraham Baboujian and Jennifer Jones said, “KRG’s size and reputation for quality and good business practices will become a model for our growing and evolving brokerage.” The new entity will consist of five ofContinued on page 22 Golf season is just around the corner, so it’s time to: Dust off your driver Book off all of your Friday afternoons Start quoting hole-in-one insurance from Aviva WIN a 52” TV All of the above Aviva is getting you ready for golf season with our hole-in-one program – now better than ever with new discounts, multiple policy savings and the chance to WIN cameras or a 52” TV! Visit avivaholeinone.com today for all the details or phone us at 1-866-898-9987. 20 March 2009 Insurancewest www.insurancewest.ca CARFL_4859_CAR005_OL.indd 1 8/20/08 4:03:22 PM
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